Capital Markets
From The Report: Qatar 2012
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With Qatar’s exchange the best performing in the GCC region for the last two years, the capital markets look set for further development. In comparison to the GCC exchange averages, the Qatar Exchange (QE) scored higher both in terms of price to earnings and price to book value in 2011. In addition, in April 2011, the QE became the first in the region to offer a full delivery-versus-payment (DvP) system, an important step for bringing Qatar in line with international best practices in the arena of settlement services. Going forward, as the country looks to get its new infrastructure development programme under way, the capital markets may play an increasingly vital role in financing these projects.
This chapter includes an interview with Emad Mansour, CEO of Qatar First Investment Bank (QFIB). It also includes a viewpoint with Adel Abdulaziz Khashabi, Head of QNB Financial Services.
Articles from this Chapter
The bigger picture: As the market develops, becoming a regional centre remains a key goal
Adel Abdulaziz Khashabi, Head of QNB Financial Services, on the role of bank-sponsored securities brokerage companiesOBGplus
Competition in the securities brokerage industry is intensifying. The recent introduction of bank-backed brokerage houses has given clients access to topnotch research and professional services, which are improving service quality and offerings to investors. Greater investment in the financial services sector is essential to the growth of capital markets. Realising this need, commercial banks were allowed to set up their own brokerage arms in 2009. Prior to 2006, commercial banks were offering brokerage…
New options: Efforts are under way to expand exchange offeringsOBGplus
While in the last few years many states in the region have debated moves to establish local secondary and junior markets, Qatar has taken several steps towards making these a reality. The state has begun issuing local currency treasury bills (T-bills) with an eye to developing a domestic market for fixed-income products. Likewise, the Qatar Exchange (QE) has embarked on a new plan to establish a junior market for small and medium-sized enterprises (SMEs). As part of these efforts to deepen and…
OBG talks to Emad Mansour, CEO, Qatar First Investment Bank (QFIB)OBGplus
Interview: Emad Mansour How is the local asset management sector growing, and what are the challenges facing its progress? EMAD MANSOUR: The increase in per capita GDP and earnings has contributed greatly to the growth of asset management. However, over the past three years activity at the institutional and the high-net-worth individual retail levels have been weak, following the global economic crisis. People prefer to keep cash rather than invest in stocks or other asset classes, such as real…
Doha Bank: BankingOBGplus
THE COMPANY: Doha Bank (DHBK on the Qatar Exchange) is the country’s fifth-largest bank, with a 7.5% market share based on 2011 assets. The lender offers conventional banking services and provides credit card, foreign exchange and asset management services. DHBK has a presence in Qatar, Kuwait and the UAE. The bank also has representative offices in Japan, China, Singapore, South Korea, Turkey, the UK and Germany. DHBK’s operations include several subsidiary and associate companies. Doha Bank Assurance Company (100% owned) provides all lines of general insurance to corporate clients. Dbank Tech (100%) offers technology services and is…
Qatar Islamic Bank: BankingOBGplus
THE COMPANY: Qatar Islamic Bank (QIBK on the Qatar Exchange) is the third-largest bank in the country, with an 8.4% market share in terms of total assets in 2011, as well as the largest Islamic bank. Established in 1982, QIBK has a presence in Qatar and overseas, including Europe, Asia, the Middle East and North Africa QIBK’s operations include several subsidiary and associate companies. Al Aqar Real Estate Development and Investment is a 49%-owned subsidiary that is involved in property investment, development and management, brokerage and consultancy services in the local real estate sector. QIB (UK) is a 70%-owned Islamic investment banking…
Industries Qatar: IndustryOBGplus
THE COMPANY: A regional and local heavyweight, Industries Qatar (IQCD on the Qatar Exchange) is the second-largest listed company on the local bourse. The state of Qatar, through Qatar Petroleum (QP), owns a 51% stake in the company. QP recently lowered its ownership from 70% by transferring a portion of its shares to Qatar’s General Retirement and Social Insurance Authority. Currently, foreign ownership in the company is limited to 25% of the free float. IQCD operates through several subsidiaries and joint ventures, including the Qatar Steel Company (QSC), the Qatar Petrochemical Company (QAPCO), the Qatar Fertiliser Company (QAFCO) and…
Qatar Electricity and Water: UtilitiesOBGplus
THE COMPANY: Qatar Electricity and Water (QEWS on the Qatar Exchange) is the country’s leading listed provider of utility services. QEWS, established in 1990, owns and operates power generation and water desalination plants in Qatar. Its installed power generation and water desalination capacity is 5432 MW and 258m gallons per day (mgpd), respectively. The company supplies more than 60% of total electricity output and in excess of 70% of total water production in the country. The government has a direct holding of 42% in QEWS and an indirect holding of 10% through Qatar Petroleum (QP). QEWS has several subsidiaries and joint ventures. The…
Masraf Al Rayan: BankingOBGplus
THE COMPANY: Masraf Al Rayan (MARK on the Qatar Exchange) is the country’s fourth-largest bank, with a 7.9% market share based on total assets in the overall domestic banking sector as of 2011. It is also the second-largest sharia-compliant bank in the country. Besides Qatar, the bank also has a presence in Saudi Arabia. The company has established itself in Qatar within a relatively short period and has brought innovative products and services to the market. MARK operates through several subsidiaries. Al Rayan Investment (ARI), based in Doha, was established in 2008 and provides investment banking and asset management services in Qatar…
Nakilat: TransportationOBGplus
THE COMPANY: Qatar Gas Transport or Nakilat (QGTS on the Qatar Exchange) is the world’s largest owner of liquefied natural gas (LNG) ships. QGTS was incorporated in 2004 to address the needs for shipping the large quantities of LNG being produced by Qatar. With a total effective LNG shipping capacity of about 8.6m cu meters, the company accounts for about 16% of global LNG shipping capacity. The company’s LNG fleet consists of 54 state-of-the-art vessels, of which 25 are wholly owned by Nakilat. QGTS also jointly owns four vessels for transporting liquefied petroleum gas (LPG). Nakilat enjoys stable revenue and cash flows due to long-term…
